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Deed Of Settlement And Release Template for England and Wales

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Key Requirements PROMPT example:

Deed Of Settlement And Release

"I need a Deed of Settlement and Release to resolve an ongoing commercial dispute with our former supplier regarding defective goods, with a settlement sum of £250,000 to be paid in three installments by March 2025."

Document background
A Deed of Settlement and Release is commonly used when parties wish to formally conclude a dispute or potential dispute with maximum legal certainty. This deed-format document is particularly important under English and Welsh law where the settlement involves the release of claims or where no consideration is provided for the settlement. It offers enhanced enforceability compared to simple contracts and typically includes detailed provisions about payment terms, mutual releases, and confidentiality obligations. The deed format is often preferred in high-value or complex settlements where parties require additional legal protection.
Suggested Sections

1. Parties: Identification and details of all parties to the deed

2. Background: Context of the dispute or circumstances leading to settlement

3. Definitions: Key terms used throughout the document

4. Settlement Terms: Core settlement provisions including payment terms and timelines

5. Release Provisions: Scope of claims being released and waived

6. Confidentiality: Obligations regarding confidentiality of settlement terms

7. Execution: Formal execution blocks meeting deed requirements

Optional Sections

1. Non-admission of Liability: Statement that settlement does not constitute admission of liability - used when defending party wants to explicitly deny liability

2. Tax Treatment: Provisions regarding tax implications of settlement - used when settlement involves significant monetary compensation

3. Non-disparagement: Mutual obligations not to make negative statements - used in employment or reputation-sensitive settlements

4. Future Cooperation: Obligations regarding future conduct or assistance - used when ongoing cooperation is needed post-settlement

Suggested Schedules

1. Schedule of Claims: Detailed list of claims being settled

2. Payment Schedule: Details of installment payments if applicable

3. Related Agreements: Copies of any related agreements being terminated or modified

4. Authority Documents: Evidence of authority to enter into settlement (if required)

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Law of Property Act 1925: Foundational legislation governing deeds, including requirements for their execution, formalities, and legal effect

Law of Property (Miscellaneous Provisions) Act 1989: Specifies modern requirements for deeds and written contracts, particularly Section 1 on deed requirements and Section 2 on land contracts

Limitation Act 1980: Governs time limits for bringing claims and the effect of settlement agreements on limitation periods

Companies Act 2006: Regulates company-related aspects including execution requirements for companies and authority to enter into deeds

Contract Law principles: Fundamental principles covering consideration, capacity to contract, and intention to create legal relations

Civil Procedure Rules: Procedural rules governing settlements, including Part 36 settlement offers and without prejudice communications

Unfair Contract Terms Act 1977: Regulates the reasonableness of exclusion clauses and limitations on liability exclusions in contracts

Consumer Rights Act 2015: Provides consumer protection measures including fairness requirements and transparency obligations in consumer contracts

Contracts (Rights of Third Parties) Act 1999: Governs third party rights in contracts and their potential exclusion in settlement agreements

Common law principles: Established legal principles regarding release of claims, waiver, and estoppel that affect settlement agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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